Most retirees face cash crisis

Business | Eurus Yiu 18 Jun 2020

The average Hong Kong citizen can bear only 75 percent of estimated basic expenses after retirement, a survey says.

Fidelity International found in a survey of 2,100 residents last year that Hong Kong people generally do not have sufficient funds to pay for their future retirement needs. It found that 55 percent need to make changes to retirement planning.

Luk Kim-ping, the Hong Kong head of Fidelity International, said the generation born after 1980 has been more well-prepared than those born after 1950.

Luk said the young have the opportunity to maximize the potential growth if they conduct long-term investment in a disciplined manner over the years.

Luk added that only 9 percent admitted that they may not have enough reserves for retirement spending. In fact, the survey found that 37 percent of people may face financial difficulties after retirement.

The survey also found that even if people increase their savings later, it would still be difficult to reach the ideal amount.

Luk emphasized the importance of starting early for retirement savings, in which the ideal retirement reserve would be 12 times their annual salary.

For older people who have not prepared enough to retire, Luk suggested they delay retirement to the age of 65 to gain more time to accumulate reserves.

 



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